Red Cat (NASDAQ:RCAT) Releases Earnings Results, Misses Expectations By $0.09 EPS

Red Cat (NASDAQ:RCAT) announced its earnings results on Thursday. The company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.09), Zacks reports. The firm had revenue of $9.65 million for the quarter, compared to the consensus estimate of $8.18 million. Red Cat updated its Q4 2025 guidance to EPS and its FY 2025 guidance to EPS.

Red Cat Price Performance

Shares of RCAT stock traded down $0.58 on Friday, hitting $7.16. 18,209,096 shares of the company’s stock were exchanged, compared to its average volume of 10,215,730. Red Cat has a 12 month low of $4.43 and a 12 month high of $16.70. The stock has a market cap of $844.95 million, a P/E ratio of -15.57 and a beta of 1.45. The company has a 50 day moving average of $10.99 and a 200 day moving average of $9.00.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on RCAT. LADENBURG THALM/SH SH upgraded shares of Red Cat to a “strong-buy” rating in a research report on Thursday, October 2nd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Red Cat in a report on Wednesday, October 8th. Northland Securities set a $16.00 target price on Red Cat in a research report on Friday, August 15th. Wall Street Zen cut Red Cat from a “hold” rating to a “sell” rating in a research report on Saturday, October 4th. Finally, Needham & Company LLC cut their price objective on shares of Red Cat from $17.00 to $12.00 and set a “buy” rating for the company in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $14.00.

Insider Transactions at Red Cat

In other Red Cat news, Director Christopher R. Moe sold 30,000 shares of the business’s stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $10.11, for a total transaction of $303,300.00. Following the completion of the transaction, the director owned 73,073 shares of the company’s stock, valued at approximately $738,768.03. The trade was a 29.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold a total of 86,833 shares of company stock valued at $861,560 in the last quarter. Insiders own 15.30% of the company’s stock.

Hedge Funds Weigh In On Red Cat

A number of institutional investors have recently added to or reduced their stakes in the stock. Comerica Bank grew its position in Red Cat by 100.2% during the 3rd quarter. Comerica Bank now owns 20,018 shares of the company’s stock worth $207,000 after acquiring an additional 10,018 shares during the last quarter. BNP Paribas Financial Markets raised its holdings in Red Cat by 118.0% in the 3rd quarter. BNP Paribas Financial Markets now owns 15,741 shares of the company’s stock valued at $163,000 after buying an additional 8,521 shares during the last quarter. Russell Investments Group Ltd. acquired a new stake in Red Cat during the 3rd quarter worth approximately $76,000. Tidal Investments LLC grew its holdings in Red Cat by 64.1% during the 2nd quarter. Tidal Investments LLC now owns 34,916 shares of the company’s stock worth $254,000 after acquiring an additional 13,643 shares during the last quarter. Finally, The Manufacturers Life Insurance Company acquired a new position in Red Cat in the 2nd quarter valued at approximately $197,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

Red Cat Company Profile

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.